UBS has reaffirmed its 'buy' recommendation on Danone, with a target price of 72 euros - a target that offers a potential upside of 25% for the stock, the day after the French food group's investor day (CMD).

The group unveiled the next chapter of its strategy, targeting 3 to 5% organic growth and an operating margin rising faster than sales for the period 2025-28, objectives that are in line with expectations according to UBS.

"CMD presented the progress made under the Renew strategy and a structurally improved outlook", points out the broker, adding that a convincing earnings growth algorithm translates into an annual EPS expansion of 8.5%.

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